Zumiez, the American action sports retailer that owns Blue Tomato in Europe and Fast Times in Australia, bounced back in the second fiscal quarter ended on Aug.1, after a difficult start of the year due to retail lockdowns. Its net income soared by 181 percent to $25.4 million, on revenues that progressed by 9.6 percent from the year-ago quarter to $250.4 million, with growth across all regions where it operates. Comparable sales in physical stores were up by over 20 percent, while online sales jumped by 122 percent. The company ended the quarter with 89.6 percent of its 720 stores open.
Sales in North America rose by 8 percent to $223.5 million while international sales climbed by 25 percent to $26.9 million. All categories recorded positive comparable sales except footwear, which was weighed down by supply chain challenges during the pandemic. The most popular categories were hardgoods and men’s clothing, followed by women’s clothing and accessories.
Overall, the gross margin rose by 250 percentage points to 36.3 percent, boosted by improvements in product margin, occupancy and distribution.
The management has not provided any guidance for the next quarter, but said that ongoing store closures and other disruptions related to Covid-19 have had a negative impact so far on the back-to-school season, which will likely get stretched into October.
Instead of 20 stores openings originally planned for 2020, the company has decided to open only 10 - 2 in North America, 7 in Europe and 1 in Australia.